The Smaller the Number of Good Substitutes for a Product

question 13

True/False

The smaller the number of good substitutes for a product, the greater will be the price elasticity of demand for it.

---

Definitions:

Budget Constraint

A budget constraint represents the limits on the consumption bundles that a consumer can afford, given the consumer's income and the prices of goods.

Opportunity Set

All possible combinations of consumption and leisure that a person can achieve given their resources and prices.

Income

The money received, typically on a regular basis, for work or through investments.

Budget Constraint

Represents the combinations of goods and services that a consumer can afford to buy with their limited income.